The United States Extended the License for the Big Four Oilfield Services to Provide Some Services in Venezuela
The Office of Foreign Assets Control (OFAC) has extended until November 15, 2024 the license for Schlumberger, Halliburton, Baker Hughes and Weatherford to provide some oilfield services in Venezuela, the department said in a statement.
The document allows these companies, as well as their subsidiaries, to conduct transactions in the Bolivarian Republic on accounts and contracts (including with PDVSA) to ensure the safety of assets and personnel.
However, the license still does not apply to the provision of services for drilling, production, transportation of Venezuelan oil and petroleum products, insurance, design and construction of various installations.
As reported, in November 2022, sanctions pressure on Venezuela from the United States eased. Then the US Treasury allowed Chevron Corp. to resume production in a limited volume in the republic for subsequent transportation of raw materials to the United States (the license does not allow deliveries to any other countries – IF), as well as to carry out any related maintenance and repairs on the assets of the joint venture. Later, in October 2023, US authorities lifted restrictions on transactions with Venezuelan oil and gas for six months after the government concluded an agreement with the opposition, paving the way for new presidential elections.
On April 17, Washington decided to return sanctions against Venezuela, including those related to oil exports, because Maduro and his representatives “did not fully fulfill the obligations undertaken under the agreement on the electoral road map.” The sanctions came into force on Thursday, with a transition period of 45 days (until May 31) during which companies will be able to continue to fulfill the terms of previously concluded contracts.
